By Ashley Young-
The UK Gambling Commission has handed operator Star Racing a £594,000 penalty over anti-money laundering and social responsibility failures.
The regulator said that between March 2020 and May 2021, the company, trading as Star Sports, was found to have ineffective policies, procedures and controls in place.
AD: Capeesh Restaurant
The UKGC said Star Sports allowed customers to deposit large sums before obtaining source of funds information, adding that it failed to then analyse this information once acquired.
“Social responsibility failures included not demonstrating an understanding of the impact and effectiveness of customer interactions in terms of the minimisation of customer risk,” the Gambling Commission said.
Star Racing is likely to face increased regulatory scrutiny by the Gambling Commission, which will impose more stringent reporting requirements, monitoring, and compliance measures to prevent future instances of money laundering.
AD: Oysterian Sea Food Restaurant And Bar
Money laundering has historically been a concern in the gambling industry, both in the UK and abroad. The nature of gambling activities, such as handling large volumes of cash and facilitating online transactions, can make it an attractive target for money launderers. Here are some reasons for its prevalence:
Casinos and betting shops often deal with significant cash transactions, making it easier for illicit funds to be mixed with legitimate ones.
In some cases, gambling operators may not conduct adequate customer due diligence, allowing criminals to use the industry to “clean” their money.
The rise of online gambling platforms provides anonymity and a global reach for money launderers, making it more challenging to detect suspicious transactions.
Money laundering in the gambling sector can transcend international boundaries, making it harder for law enforcement agencies to tackle the issue effectively.
In order to combat money laundering in the gambling industry, the UK Gambling Commission have implemented various measures, including strict anti-money laundering (AML) regulations, Know Your Customer (KYC) procedures, and reporting obligations. However, it remains an ongoing challenge, and continuous efforts are needed to stay ahead of evolving money laundering techniques.
AD: Heritage And Restaurant Lounge Bar